Piper Sandler Issues Pessimistic Forecast for Rithm Capital (NYSE:RITM) Stock Price

Rithm Capital (NYSE:RITM) had its target price cut by equities researchers at Piper Sandler from $14.00 to $12.50 in a research report issued to clients and investors on Thursday,Benzinga reports. The firm currently has an “overweight” rating on the real estate investment trust’s stock. Piper Sandler’s price objective would suggest a potential upside of 33.62% from the company’s current price.

A number of other analysts have also weighed in on RITM. Citizens Jmp raised their target price on shares of Rithm Capital from $12.50 to $13.50 and gave the company a “market outperform” rating in a research report on Wednesday, May 20th. Keefe, Bruyette & Woods reduced their price target on Rithm Capital from $14.00 to $13.00 and set an “outperform” rating on the stock in a report on Friday, May 1st. Weiss Ratings lowered shares of Rithm Capital from a “hold (c-)” rating to a “sell (d+)” rating in a report on Tuesday, May 26th. Citigroup reissued an “outperform” rating on shares of Rithm Capital in a report on Wednesday, May 20th. Finally, Wall Street Zen raised shares of Rithm Capital from a “sell” rating to a “hold” rating in a research note on Sunday. Ten investment analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $13.20.

Rithm Capital Stock Performance

Rithm Capital stock opened at $9.36 on Thursday. The company has a quick ratio of 1.28, a current ratio of 1.28 and a debt-to-equity ratio of 4.02. The stock has a market cap of $5.22 billion, a PE ratio of 8.58 and a beta of 1.13. Rithm Capital has a 12-month low of $8.43 and a 12-month high of $12.74. The business’s 50-day moving average price is $9.42 and its two-hundred day moving average price is $10.11.

Rithm Capital (NYSE:RITM) last posted its earnings results on Tuesday, April 28th. The real estate investment trust reported $0.51 EPS for the quarter, missing analysts’ consensus estimates of $0.53 by ($0.02). The company had revenue of $1.38 billion during the quarter, compared to the consensus estimate of $1.27 billion. Rithm Capital had a return on equity of 19.48% and a net margin of 14.44%. As a group, analysts expect that Rithm Capital will post 2.27 earnings per share for the current fiscal year.

Insider Activity at Rithm Capital

In other news, Director David Saltzman sold 80,922 shares of the stock in a transaction on Wednesday, May 20th. The shares were sold at an average price of $9.25, for a total transaction of $748,528.50. Following the completion of the sale, the director directly owned 44,248 shares in the company, valued at $409,294. This represents a 64.65% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Corporate insiders own 0.57% of the company’s stock.

Institutional Trading of Rithm Capital

Large investors have recently bought and sold shares of the business. AQR Capital Management LLC lifted its stake in Rithm Capital by 20.4% in the first quarter. AQR Capital Management LLC now owns 77,625 shares of the real estate investment trust’s stock valued at $889,000 after buying an additional 13,166 shares during the period. NewEdge Advisors LLC grew its position in shares of Rithm Capital by 5.3% during the 1st quarter. NewEdge Advisors LLC now owns 31,311 shares of the real estate investment trust’s stock worth $359,000 after buying an additional 1,585 shares during the period. Goldman Sachs Group Inc. increased its stake in shares of Rithm Capital by 75.6% in the 1st quarter. Goldman Sachs Group Inc. now owns 1,539,483 shares of the real estate investment trust’s stock valued at $17,627,000 after acquiring an additional 662,585 shares in the last quarter. Geneos Wealth Management Inc. increased its stake in shares of Rithm Capital by 14.3% in the 1st quarter. Geneos Wealth Management Inc. now owns 7,031 shares of the real estate investment trust’s stock valued at $81,000 after acquiring an additional 881 shares in the last quarter. Finally, M&T Bank Corp lifted its position in shares of Rithm Capital by 13.9% during the 2nd quarter. M&T Bank Corp now owns 26,173 shares of the real estate investment trust’s stock valued at $296,000 after acquiring an additional 3,200 shares during the period. 44.92% of the stock is currently owned by institutional investors and hedge funds.

Rithm Capital Company Profile

Rithm Capital Corporation is a specialty finance company that originates, acquires and manages structured credit investments collateralized by real estate assets in the United States. The company focuses primarily on senior floating-rate loans secured by multifamily, commercial, industrial and single-family rental properties, aiming to deliver attractive risk-adjusted yields through a diversified portfolio of floating-rate real estate debt.

In addition to senior loans, Rithm Capital invests in residential mortgage-backed securities, including agency and non-agency pools, as well as other real estate-related credit instruments.